The Andrews Government will spend $3.78 million to ensure the Overland train service between Melbourne and Adelaide stays open in 2019.
The 131-year-old route, operated by Great Southern Rail, was put in jeopardy when the South Australian Government announced last month it would discontinue its $330,000 annual contribution to the service on December 31.
The train runs between Melbourne and Adelaide, but also acts as a regional rail service for Western Victoria.
Victorian public transport minister Melissa Horne said on Tuesday the state would boost its funding by $200,000 to help make up for South Australia’s funding shortfall, so the service can continue to operate.
“We’ve stepped in because the Overland provides an important connection to South Australia and for people in Western Victoria, and because it’s an Australian rail treasure,” Horne said.
“Communities from across Western Victoria have told us how important this route is for their travel and to the history of their town – that’s why we’re continuing our support for this historic service.”
Great Southern Rail welcomed the $200,000 addition of new funding by Victoria, but noted it meant it would still absorb $130,000 in new operational costs.
It said it would conduct a formal review of the service’s future in early 2019, but ensured passengers the service would run at least to the end of 2019.